The Dangers Posed By Lien Waivers

Law360, New York (October 15, 2013, 5:48 PM EDT) -- Every contractor has done it — signed a lien waiver prior to receiving payment, fully expecting to be paid. You have always been paid and it has never been an issue. But is it a safe practice?

To understand the risk of this common practice, it is first necessary to understand what a lien waiver is and what it does.

Owners often require contractors, subcontractors and other lower-tier contractors to submit lien waivers to ensure that unexpected mechanics liens don’t pop up on projects. There are...
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